CODE 18. 17

R. Balcon

Mr Duffy HKD

1.

IN CONFIDENCE

&

Reference.

Dfm To Note

.2/1.

I spoke to Professor Turner this morning on the lines we agreed, namely that ODM had been asked to sort out the financial aspects of Professor Turner's study but that the need to observe rules on public expenditure might delay matters. Nevertheless we hoped to solve any problems by the time he comes to see us. I also mentioned that an advance of £1,500 to Professor Handy was still outstanding.

2. Professor Turner is still angry about what he calls the lack of consideration and inefficiency displayed by the FCO. I feel a lot of the trouble stems from the original understanding that he would prepare an interim report by 31 December 1976, with its inference that he would then return to Hong Kong for a further period to prepare a final report. He also says he was misled by us about the availability of local resources in Hong Kong to help with the study: he referred particularly to Dr Fosh's surveys. He also mentioned difficulties and breakdowns in communication and the fact that some material would have to be processed on the University of Bath's computers, for which Dr Fosh might be billed.

3. After some persuasion, Professor Turner revealed that he and Dr Fosh would be in London on Monday and Tuesday next and said this would be the only time they could see us. He referred again to the question of a fee, this time mentioning of the airfare from Hong Kong (it was when he spoke to me last night). I said I thought there was no possibility of agreement being forthcoming to pay such a fee. I told him that nevertheless we still hoped very much to see him and he agreed that he, with Dr Fosh, could call on us on the Monday afternoon (17 January) or the Tuesday morning (18 January). I said someone from the FCO would get in touch with him, possibly tomorrow (Thursday) to fix a definite time and place. I referred to the authority for him to travel first-class rail and you may think it appropriate to obtain similar authority for Dr Fosh.

4. As a parting shot, Turner said he would expect his, and Dr Fosh's final financial accounts to be settled when they call here next week.

5. Would you please let me know the final arrangements made for this meeting. I would like to be present but will not be available before 3.30 on the Monday afternoon. I have an appointment for 10.30 on the Tuesday but think I could re-arrange this if necessary.

6.

Professor Turner made some corrections to his latest "corrected report". These are very minor and I will send you a list separately.

J.R.S.

12 January 1977

Apk it. Host & agreed meeting

Tuesday

18-X

n

HR G Hurst

11an

Ferner.

8

A. Huse will tolle Prof Funer

IN CONFIDENCE

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